What is the default risk premium

Assignment Help Accounting Basics
Reference no: EM133178384

Question - A 1-year short-term corporate bond yields 8.50%. The stated rate for the short-term government issued security is 4%. The liquidity premium is 2.75%. What is the default risk premium imputed on the 1-year short-term corporate bond?

Reference no: EM133178384

Questions Cloud

Paying a lower interest rate than corporate bonds : Because they are backed by the government that issued them, government securities are considered risk-free. Purchasing risk-free assets has the disadvantage of
Presence of blended technique equilibria : In 1938, the Danish numerical financial analyst Frederik Zeuthen demonstrated that the numerical model had a triumphant system by utilizing Brouwer's decent poi
What are the implications of this result for cash management : Assuming a 1yr, money market account investment at 4.73 percent (APY), What are the implications of this result for cash management
Employees to implement major new strategy : Explaining how I would motivate managers and employees to implement a major new strategy.
What is the default risk premium : The stated rate for the short-term government issued security is 4%. The liquidity premium is 2.75%. What is the default risk premium
External threat to create strategy : Provide an example WT strategy and explain how an internal weakness can be matched with an external threat to create a strategy.
What is the risk free rate : The following data are gathered: The real risk-free rate is 1.05% and Inflation premium is constant at 2.60%. What is the risk free rate
Effective human resource management strategies : Summarize the article, webinar or blog identifying important information for managers,
What is the conversion costs per equivalent unit : Direct materials are added at the beginning of the production process. What is the conversion costs per equivalent unit for the month of September 2021

Reviews

Write a Review

Accounting Basics Questions & Answers

  Determine the unit product cost using absorption costing

During this first year the company produced 44,000 units and sold 36,000 units at a price of $140 per unit. Determine unit product cost using absorption costing

  Compute the amount of phantom profit

In its first month of operation, Kuhlman Company purchased 270 units of inventory for $6, Compute the amount of phantom profit that would result

  Compute the net working capital and the current ratio

Compute the Net Working Capital and the Current Ratio given the following information. A hotel, in addition to reporting depreciation expense on its income statement, mentioned its method of depreciation and the estimated life of its assets in the ..

  Research topic-management accounting

Research working title:An examination of the extent to which the manufacturing industries in Singapore use Enterprise budget management model analysis.

  What would be the differintial income or loss

A business currently sells mobile phones in the domestic market for $80. What would be the differintial income or loss from accepting the overseas bid

  Explain the specific risks and nature of the company

Explain the specific risks and nature of the company you will be auditing and create comprehensive work programs for the Acquisition, Payment

  Vincent corp has 100000 share of 100 par common stock

vincent corp. has 100000 share of 100 par common stock outstanding. on june 30 vincent corp declared a 5 stock dividend

  Prepare the appropriate journal entries for the transactions

Bramble Corporation operates a retail computer store. Prepare the appropriate journal entries for the above transactions for Bramble Corporation

  What is the book value of the asset at the time of sale

How would the sale affect the amount of total assets shown on the balance sheet (increase, decrease, no effect) and by how much?

  Calculate profit-loss on sale

The amount 420 USD is selling price of one unit of A. d. on June 26th your company purchased additional 190 of A at 330 USD/unit. Calculate profit/loss on sale

  Prepare a direct materials budget for the deluxe product

Avery Company manufactures a product called Deluxe. Prepare a direct materials budget for the Deluxe product for the third quarter of 2012

  What percentages of your money must be invested

What percentages of your money must be invested in the risky asset to form a portfolio with a standard deviation of 0.08

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd